The disposal is due to complete on 15 November 2019, which provides SREIT with income during the half-year period. The buyer has paid a non-refundable deposit of £1.89 million (10% of the purchase price).

The property comprises a 64,614 sq ft warehouse on Allied Way Industrial Estate in Acton let to Booker Limited until September 2026 at £700,000 per annum. The price therefore reflects a net initial yield of 3.5%.Based on the disposal price, the asset has generated an ungeared total return of 14.3% per annum since acquisition in 2005, compared with the MSCI Benchmark for the same period of 5.7% per annum.The disposal is consistent with SREIT’s strategy to sell lower yielding assets and to realise gains from asset management.

Since 31 December 2018, SREIT has completed or unconditionally exchanged contracts to sell five assets (including the Booker unit) for £68.9 million, which reflect an average net initial yield of 3.1%.

This follows the previously announced disposal of Victory House at a price of £36.1 million, which completed on 30 April 2019. Following completion of the Booker unit, and adopting portfolio value as at 31 March 2019, SREIT’s loan to value, net of cash, would be 19%.

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

disable

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.